Saudi Arabia’s Ades Holding Co. Secures Two Major Contracts Worth SR511 Million
In a bold move showcasing its dominance in the oil and gas sector, Ades Holding Co. has recently inked two contracts totaling SR511 million ($136.2 million).
One of the contracts, valued at SR350 million, was signed with Total Energies to oversee operations on an offshore drilling platform in Qatar. The agreement includes an initial one-year period with the option to extend for up to 18 months, with operations set to commence in the second half of 2024. Importantly, there are no related parties involved in this lucrative deal.
This contract comes hot on the heels of another major announcement in April, where Ades was granted the responsibility to operate a separate offshore drilling platform in Qatar by Total Energies. With this latest addition, Ades now oversees three drilling platforms in the region, solidifying its market presence.
In a strategic move, Ades transferred its Emerald Driller platform to Indonesia, further expanding its reach and influence in the industry. Additionally, the company secured a 21-month contract to operate an elevated platform in the Gulf of Suez, Egypt, valued at SR161 million. Operations for this contract are expected to kick off in the coming weeks.
This new engagement in Egypt is part of Ades’s larger strategy to revitalize its regional operations. The company has recently secured contracts in Thailand and Qatar, bringing the total number of reactivated platforms to three out of the five that were previously suspended in Saudi Arabia.
Despite these impressive developments, Ades saw a slight dip in its stock price following the announcement. However, with its expanding footprint and growing influence in the oil and gas sector, the company is poised for continued success in the industry.